InstaVolt welcomes £1.5bn EV package but warns new costs could undermine driver and investor confidence

  Posted by: electime      5th December 2025

InstaVolt has welcomed the Government’s £1.5 billion package to accelerate the UK’s transition to electric vehicles, but warned that confirmed pay-per-mile taxation and unresolved cost pressures still threaten to slow EV uptake and delay investment in public charging infrastructure.

This week’s Autumn Budget confirmed:

• £1.3 billion of additional funding for the Electric Car Grant, extending the scheme for a further 12 months and cutting upfront EV costs by up to £3,750.
• An extra £200 million for public charge-point rollout, complementing previous infrastructure commitments.
• A consultation to extend permitted development rights, aimed at making home and on-street charging easier for people without driveways.
• A new mileage-based road-use charge for battery-electric and plug-in hybrid vehicles from April 2028, set initially at 3p per mile for EVs.
• A decision not to extend business rates to public charging bays, avoiding a significant new cost burden for charge-point operators.

Delvin Lane, CEO of InstaVolt, said: “This week’s Budget delivers a significant and much-needed boost to the UK’s EV transition. Extending the Electric Car Grant and committing an extra £200 million to public charging will help more drivers make the switch and improve access for those who rely on rapid charging day to day.”

The company also welcomed the Government’s decision to rule out business rates on public charging bays, a policy that industry groups warned could have added more than £100 million in annual costs across the sector.

“We are pleased that the Government has listened to industry concerns and decided not to apply business rates to public charging bays,” Delvin said.

“Avoiding this new burden means more capital can flow directly into new sites, upgraded grid capacity and wider regional coverage – exactly what the UK needs to accelerate EV adoption.”

However, InstaVolt cautioned that other elements of the Budget could still affect both driver behaviour and network investment.

Delvin continued: “The introduction of pay-per-mile charging from 2028 marks a major shift in how the UK funds its roads. While reform is necessary, it must be delivered in a way that keeps EVs cheaper and more predictable to run than petrol and diesel. Without safeguards, there is a risk this could dent confidence at a crucial moment for adoption.”

VAT inequality also remains a structural barrier. Many UK households cannot install a home charger and pay 20 per cent VAT on public charging, compared with 5% at home.

“If pay-per-mile is coming, VAT fairness must come with it,” Delvin said.

“Current VAT inequality penalises exactly the drivers the transition most needs to include – renters, flat-dwellers and lower-income households. Equalising VAT, or reducing it for public charging, would protect affordability and strengthen confidence.”

InstaVolt also welcomed the Government’s forthcoming review of public-charging costs, which will examine energy prices, non-energy infrastructure costs and options to reduce costs for public-charging users.

But the company stressed that delivering the UK’s ultra-rapid-charging network still depends on tackling structural barriers around grid connections and long-awaited government funds.

“Funding and planning reform are positive steps, but the detail matters,” added Delvin.

“We need faster grid connections, clarity on the future of the Rapid Charging Fund and consistent local permitting. These are the practical changes that will accelerate rollout, improve driver experience and strengthen investor confidence.”